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The investments in eSports gaming stocks have piqued the interest of investors, emerging as a powerhouse in the investment world. eSports has transformed from a niche hobby to a worldwide sensation with impressive staying power.
Remarkably, according to Statista’s estimates, the eSports global market is predicted to generate revenue of $4.3 billion by 2024. Further, it predicts a compound annual growth rate (CAGR) of 7.10% from 2024 to 2028. Moreover, Statista expects a considerable surge in user penetration, rising from 11.7% in 2024 to 13.7% by 2028. This clearly signifies the escalating global interest in eSports.
Moreover, the popularity of eSports has soared to such an extent that Saudi Arabia recently inaugurated the annual eSports World Cup, featuring top games and considerable prize money. As traditional sports struggle with the challenges posed by a global pandemic, online eSports tournaments and streaming services have taken advantage of this situation. They are prospering amidst changing consumer behaviors.
As a result, these three stocks present a tempting opportunity to capitalize on the growth of competitive gaming.
Take-Two Interactive (TTWO)
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Take-Two Interactive (NASDAQ:TTWO) has been a standout performer in the gaming and eSports sector this year. The company is a leading force in gaming and esports, utilizing its NBA 2K franchise as a cornerstone of its successful esports strategy. The launching of the 2018 NBA 2K League marked its first step into esports. It illustrated Take-Two Interactive’s ongoing dedication to the expanding eSports industry.
Additionally, TTWO’s recent financial results astonished the market. Earnings per share soared to $1.42, exceeding predictions by 38%. Additionally, the company recorded historic revenue of $1.44 billion, beating preliminary estimates and emphasizing its strong growth pace.
Take-Two Interactive’s notable inclusion in the Nasdaq 100 Index represents a momentous achievement. It indicates high investor optimism and increased anticipation for future releases, especially the eagerly awaited Grand Theft Auto VI. Concurrently, the unveiling of the Grand Theft Auto VI trailer emphasizes the company’s market dominance.
Tencent Holdings (TCEHY)
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Tencent Holdings (OTCMKTS:TCEHY) has made a stunning investment of $15 billion in the eSports industry, causing a ripple effect in the regional market. TCEHY is actively developing talent, supporting league formation, and constructing esports-themed parks as part of its mainstream gaming strategy, solidifying its devotion.
In an effort to globalize eSports and elevate its status to that of the Olympics, Tencent Holdings has formed a strategic alliance with the Global eSports Federation. This cooperation not only expands Tencent Holding’s global reach but also highlights its commitment to raising eSports to an international standard. The company’s participation in events like the League of Legends championship further boosts its importance in eSports, attracting a large international audience.
While the company’s eSports initiatives are notable, its expansion into e-commerce, cloud services, and digital content support its dominant gaming division. This strategic diversification, backed by state-of-the-art technology and a vast user base, consolidates Tencent Holding’s competitive advantage in the tech industry.
Electronic Arts (EA)
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Electronic Arts (NASDAQ:EA) has been exceptional in the eSports stocks sector, registering an impressive year-on-year (YOY) return of about 17%. The fiscal 2024 Q3 report significantly outperformed expectations, with earnings per share reaching $1.07. This figure surpassed consensus estimates by a substantial 17 cents, representing a noteworthy 47% increase from the prior year’s 73 cents.
Moreover, EA’s success can be attributed to its active involvement with the eSports community. Investments in events such as the EA Sports WRC Knockout Trophy ’23 and the Apex Legends Global Series Year 2 Championship have expanded its reach and visibility among eSports fans worldwide.
Additionally, the integration of UEFA Euro 2024 into EA sports FC 24 and related digital platforms strengthens EA’s leading position. Hence, Electronic Arts emerges as a significant player in the gaming sector, presenting a unique opportunity in eSports stocks.
At the time of publishing, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, as per the InvestorPlace.com Publication Guidelines